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Brookfield to acquire American Equity in $4.3bn deal

Canadian private investment firm Brookfield has agreed to acquire the 80% stake it doesn’t already own in annuities provider American Equity Investment Life Holding (AEL) in a deal that values the business at $4.3bn.

Canadian private investment firm Brookfield has agreed to acquire the 80% stake it doesn’t already own in annuities provider American Equity Investment Life Holding (AEL) in a deal that values the business at $4.3bn.

The cash and stock offer from Brookfield’s reinsurance arm, which equates to $55 per share, was initially made late last month and comes after AEL turned down a bid of almost $4bn from Elliott Investment Management-backed insurance firm Prosperity Life, because it “significantly undervalued” the company.

Brookfield’s offer of $38.85 in cash and the rest in shares of Brookfield Asset Management, represents a 35% premium to AEL’s last closing price on the New York Stock Exchange before media reports broke of a possible Brookfield takeover bid.
 

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